Good day, and welcome to the Cousins Properties’ Second Quarter Conference Call. Today’s call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to Mr. Eddie Jones of Corporate Communications. Please go ahead sir.

Thank you. Certain matters the company will be discussing today are forward-looking statements within the meaning of Federal Securities Laws. For example, the company may provide estimates about expected operating income from properties, as well as certain categories of expenses along with the expectations regarding leasing activity, rental rates, leasing expenses, development, acquisition, financing and disposition opportunities and expectations regarding the demographic and economic trends in markets in which the company is active. Such forward-looking statements are subject to uncertainties and risks and actual results may differ materially from these statements. Please refer to the company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2013 and its current report on Form 8-K filed on July 29, 2014 for additional information regarding certain risks and uncertainties. Also, certain items that company may refer to today are considered non-GAAP financial measures within the meaning of Regulation G, as promulgated by the SEC. For these items, the comparable GAAP measures and related reconciliations may be found through the quarterly disclosures and supplemental SEC information link on the Investor Relations page of its website at www.cousinsproperties.com. I will now turn the call over to Larry Gellerstedt.

Good afternoon, everyone, and thanks for joining us today. Joining me are Gregg Adzema, Chief Financial Officer; and Colin Connolly, Cousins’ Chief Investment Officer. It’s been a great year. We continue to make significant progress with our long-term strategic plan. Second quarter in particular was highlighted by strong operational performance and prudent balance sheet management. Our markets continue to lead the nation in terms of job growth and net absorption and our urban submarkets generally lead in each of our cities. Texas is further along in the cycle and is seeing some supply growth, but today the majority of this supply has been sub-urban and is not impacting our urban locations. In Atlanta and Charlotte, new supply is almost non-existent with the exception of a few built-to-suits and therefore the outlook for rental rates and customer demand remains strong for the next couple of years. Our strong operational performance was driven by the performance of our team which leased or renewed 416,000 square feet of space during the quarter, with deal terms that continue to trend in our favor. Same property net operating income was up 7.7% during the quarter driven by outstanding expense control and we made considerable progress on our properties with embedded NOI potential. As for prudent balance sheet management, we replaced our last remaining tranche of preferred equity with common equity and we recast our credit facility on significantly more favorable terms. We have an industry leading balance sheet which is well positioned for what lies ahead. I am really proud of our team and what we’ve accomplished not only this past quarter, but over the last few years. What we’ve done is truly transformational. We didn’t just identified compelling strategy, we implemented it, both quickly and efficiently, but we’re not finished. For evidence, look no…

Thanks, Larry, and good afternoon everyone. This was a strong quarter for Cousins. We are in attractive point in the cycle to be an owner of trophy office towers located in the best urban submarkets across the Sunbelt. And our fantastic property management and leasing team continue to outperform and drive great results within the portfolio. I will start by highlighting some of our key operational and leasing metrics, then provide some color on activity within the existing portfolio and wrap up with updates on our development and investment activity including our pending acquisition of Fifth Third Center in Charlotte. As Larry mentioned, our team leased approximately 416,000 square feet during the quarter. While the volume was generally consistent with past quarters, the underlying lease economics were terrific. Our weighted average net effective rent per square foot was over $2 a square foot higher than results from the previous two quarters. And our second generation cash releasing spread was up over 33%. As I mentioned last quarter, these metrics can and will be volatile based on the geographic mix of leasing in any given quarter, but directionally we believe that these metrics will continue to trend in a positive direction. Same store NOI on a cash basis was up 15% and our same store percentage lease ended the quarter at 91%, up 30 basis points from the last quarter. The increase in NOI was primarily driven by the burn off of free rent and operating expense saving. I do think it’s important to note that our same store pool only accounts for 31% of our total portfolio and does not include any of our Texas acquisitions, which account for a significant percentage of the embedded growth and below market rents within Cousins overall portfolio. Moving onto some specific portfolio updates.…

Thanks Colin. Good afternoon everyone. Overall we had a solid and productive second quarter. FFO was $0.18 per share. That’s up 50% from the $0.12 per share we reported in the second quarter last year. Excluding a non-cash charge associated with the early redemption of our 7.5% Series B cumulative senior preferred stock this April, which we discussed on last quarter’s conference call, FFO this quarter was $0.20 per share. We’ve paid for this preferred redemption with proceeds from the issuance to the 8.7 million shares of common stock this past March. With this redemption, we have now eliminated preferred equity from our capital stack. We also re-cashed our unsecured credit facility during the second quarter. It was a very successful transaction. We obtained a clear five-year commitment extending the maturity from 2016 to 2019. We increased the size of the facility from $350 million to $500 million, and we improved pricing across the board. At our current leverage level, we improved our all-in pricing on the facility by 45 basis points. Putting this important financing to bed on these favorable terms is a terrific win for our shareholders. Finally, we announced the launch of an 18 million share common equity offering last night. The proceeds from this issuance will be used to pay for 100% of the Fifth Third Center acquisition Larry and Colin discussed earlier. Combined, these three transactions lock in the simplicity and the strength of our balance sheet. And by simple I mean a balance sheet with a clean capital stack comprised of only common equity, mortgage and construction debt in an unsecured credit facility. I mean the balance sheet were 87% of our NOIs generated by assets in which we own 100% interest, and a balance sheet where NOI from a single asset class office…

Thank you. (Operator Instructions) Our first question comes from the line of Jamie Feldman of Bank of America Merrill Lynch. Please proceed with your question. Jamie Feldman – Bank of America Merrill Lynch: Great. Thank you and good afternoon. So I guess just starting with Fifth Third Center. Can you talk about where you think rents are in the building today versus the market?

Hi Jamie, it’s Colin. We’re not going today to comment specifically on where our in-place rents are versus market, I guess I could characterize in general where market rents are in uptown Charlotte for the best class A assets if you were to go to CoStar for example, you’ve seen those range from the high 20 on a gross basis, upwards of in the low $30 per square foot as well. Jamie Feldman – Bank of America Merrill Lynch: Okay. And then what did you is the – or did you say what the actual expirations, like when are the biggest leases coming due?

Sure Jamie. Again the top three customers in the building are Bank of America being the largest, McGuireWoods being the second largest customer and then Fifth Third, those three customers comprise 74% of the total square footage, but across the entire building there is roughly nine years of weighted average lease term remaining. Jamie Feldman – Bank of America Merrill Lynch: And are there any in the near-term?

Excuse me? Jamie Feldman – Bank of America Merrill Lynch: Are there any leases expiring in the near-term?

There is no material near-term lease expiration. Jamie Feldman – Bank of America Merrill Lynch: Okay. And then in terms of Charlotte as a market, how do you plan to manage that part of your business? I don’t think you have a big concentration there right now. So who is going to run it, and do you expect to add more people? And then how do you think longer term about expanding into Charlotte specifically?

Well, we really don’t consider as expansion into Charlotte. We’ve been in Charlotte for a decade and we developed with our partner, Bank of America, the 1 million square foot Gateway Village and have co-owned that and done all the management of that asset since it was developed. So we have a significant team in Charlotte, the Gateway Village. For people that aren’t familiar with it, it’s a mixed use facility with a million square feet of office, but it’s also got retail and multifamily. It’s a very dynamic project. And so we’ve got a great backbone of people up there, and this will absorb well into the talent base we have, as well as some of the talent that’s been with this property. And we’ll move forward to that. We have said for the last three or four years is with this strategy, the North Carolina and Charlotte specific is very much a focus for us. And so this was really something that we had been tracking this potential asset opportunity for a year. And when it came available with our history of the building, our knowledge of Charlotte, it was a great fit. We’re very excited about it and look forward to growing further in Charlotte as we move forward. Jamie Feldman – Bank of America Merrill Lynch: Okay, thank you. And then looking at some of the big success, it looks like you had small but still occupancy or leasing percentage declines at 2100 Ross, 191 Peachtree and Promenade. Can you guys just give an update of what’s going on at those buildings and what your leasing prospects are?

Sure. Jamie, you’re referring to 2100 Ross, Promenade and the 191 Peachtree? Again, the activity in 2100 Ross continues to be very strong, the Arts District in the uptown market of Dallas. There is quite a bit of activity. Job growth is strong. And so we have a healthy pipeline, and I think very much remain on schedule. We do have a very attractive contiguous two floor, potentially three floor contiguous block of space there. So activity is good. Here in Atlanta at 191 Peachtree, we talked about in our opening remarks, at Atlanta certainly had trailed Texas in terms of the recovery, but we’re really starting to see great signs of job growth here. As I mentioned, we’re starting to see some of the customers within our existing portfolio expand. And with little new constructions slated to deliver over the next couple of things, I think we think now is an interesting time and a great time to be an owner in Atlanta to continue to drive the occupancy.

Yes, Jamie. I’ll just add on what Colin had just said. The demand side really on Promenade and 2100 Ross, it remains very strong and we remain confident that we’ll show good progress during the balance of this year on both of the assets. 191 Peachtree, as we’ve said before downtown is the slower of the submarkets that we’re in, but we’re continuing to see activity at 191 Peachtree and I am optimistic we’ll also have some positive results to show here about the next year. Jamie Feldman – Bank of America Merrill Lynch: Okay, great. Thank you very much.

Thanks Jamie.

Our next question comes from Brendan Maiorana of Wells Fargo. Please proceed with your question? Brendan Maiorana – Wells Fargo: Thanks. Good afternoon. Colin, I know you guys are kind of limited in terms of what you can say about Fifth Third. Just had one question or a clarification. So the spread between the cash cap rate and the GAAP cap rate. Is that primarily driven by adjustment for mark-to-market of rents, or is there a component or large component that’s kind of free rent or annual bumps that’s driving the spread between that 60 and the 72?

Yes, Brendan obviously there is kind of two components there. A little bit limited in terms of what I can say. I think one thing, I would point you towards is as I said there is approximately 9 years of weighted average lease term in the building. I think that hopefully can… Brendan Maiorana – Wells Fargo: Okay, that helps. And then Colin, just how do you think about the – I think you mentioned that the acquisition environment is, it’s still pretty challenging out there, but you feel like there are still things that you guys can get done. How do you think about deploying capital in acquisitions today? Is there more stuff that you guys can pick off or at another call earlier today it was suggested that even in the past 90 to 120 days in your kind of Sunbelt markets, there is even been a sort of reacceleration of asset pricing. So is it pretty challenging or do you think you can get some more stuff done?

Hi Brendan let me take a swing at that first, and Colin can fill in. We’re extraordinarily diligent with a very much of a sharp shooter approach. So we haven’t acquired anything as a company in a year since we did the Crescent transaction. We really haven’t – in the Texas markets on the acquisition standpoint, we really haven’t looked at anything since that period of time just because of the aggressive nature of pricing. The south east being Georgia and North Carolina have obviously trailed for reasons we stated in the call, just the impact of the recession has caused these markets to come back slower, and the spread has been a little bit wider in terms of capital coming back into these markets, although that has changed in the last 12 months. And so it has become more aggressive, but we still think that there is a spread where we can see specific assets were not just the price we pay but the operating platform that we bring in terms of leasing relationships, client relationships and capital deployment to reposition them. We think they are going to be a few select, but we think we’re very much in the end of that cycle. We’re just a couple of targets that our potentials will have to look at. We much more are looking in our markets the development opportunities. And I am optimistic between now and the end of the year, we’ll have some more development opportunities to talk about as well. Brendan Maiorana – Wells Fargo: Okay, great. So last one is for Gregg, in terms of the balance sheet, just with the raise that was done last night or this morning. If we assume that the shoes gets extra size, you sort of overcapitalized this transaction. And then with additional asset sales that are smaller but I think are expected for the back half of the year, how should we think about deployment of that capital which really on a pro forma basis brings your leverage down to a pretty low level after this deal?

Good afternoon Brendan. First off, there is no green shoe, there is no overlap for this equity ratio. It’s a clean 18 million shares. So really when you look at the proceeds from that 18 million share offering, it match funds the Fifth Third acquisition pretty close to 100%. So it’s the first question. Second question is I think kind of a balance sheet management question, and are we lowering our leverage strategically in the balance sheet and the answer would be no. We’ve been running the balance sheet kind of between 25% to 30% leverage for the last few quarters. This takes us down to the bottom of that range which is still generally within the range where we’ve been running the balance sheet. The idea with the equity raise was to fund 100% of Fifth Third, that’s all. Brendan Maiorana – Wells Fargo: Okay, great. Thanks.

Thanks Brendan.

Our next question comes from Dave Rodgers of Robert W. Baird. Please proceed with your question. Matt Spencer – Robert W. Baird: Hi, Good afternoon. It’s Matt here with Dave. Can you maybe talk about the leases that were signed at 777 Main in the quarter and the activity that you’re seeing there? I think on the last call, activity there was a little bit full. If you could just provide a little bit more color, that would be great.

The activity in Fort Worth is a bit slow. We expected it to be slow as we’ve said before, that market in the last decade has been over 90% leased and we bought 777 Main, we knew we were buying vacancy due to corporate M&A transaction that created the vacancy. And so we’ve been – we anticipated as slow lease up. It’s been slow, although new customers tend to come and take blocks in Fort Worth and it remains – it’s the best building in the market. Fort Worth is extraordinarily vibrant city that’s growing and adds amenities. We did do a couple of small deals this quarter. And I would tell you in doing the small deals, that’s the 0.5% of the deals done in the market. So we’re pleased with the progress, but we do anticipate 777 will continue to be a slow and choppy [indiscernible]. Matt Spencer – Robert W. Baird: Okay. And then maybe just regarding the $12.6 million that is signed leases and then what the $6.5 million that was actually realized in the second quarter? Could you provide any color regarding maybe when we’ll start to see that revenues start to show up in earnings? Is it in the back half 2014, 2015 or maybe even beyond?

Hi, it’s Gregg. As we’ve said in previous quarterly conference calls, most of those leases were run through the income statement by the end of this year. Not all, we’ve got a two or three leases signed that kind of trickled into ‘15 and ‘16 but the vast majority of that number will run through the income statement by the end of this year. And that’s consistent with what we said previously. Matt Spencer – Robert W. Baird: Okay, thanks guys.

Our next question comes from the line of Jed Reagan of Green Street Advisors. Please proceed with your question. Jed Reagan – Green Street Advisors: Good afternoon guys. You talked about the 6% initial yield of Fifth Third. Just wondering if you have a stabilized yield expectation for that building? And then also if you anticipate having to put any – have additional capital into that asset?

As we said earlier, the building was phenomenally well built when it was build, but we really don’t see a lot of capital being required. And Jed, as you know, given the equity offering yesterday, there is just not a lot more we can say about anticipation of where the project maybe after next week, we’ll be able to give a lot more color. Jed Reagan – Green Street Advisors: Okay, fair enough. And it sounds like it was a fully marketed deal. I am guessing competition for the asset was pretty brisk. I am just curious what made you guys comfortable? Is that kind of heavier price per pound that gather as a higher watermark in that CBD market and maybe how you thought about that use of capital versus perhaps pursuing higher risk adjusted return and development planning kind of proceeds elsewhere?

Well, I think if you look at the price in Charlotte there, a lot of the trophy buildings in Charlotte over the years because they were bank account have not traded and this isn’t that far above some assets that traded a year and half ago if you just look at the movement in the overall capital markets have made. We are very disciplined in our approach here. We spent I think – if you were to talk to the brokers, we spent a lot of time probably more than anyone in our diligence beforehand not only on the building but on the market. As I said, we know the customer base because we’ve done business with a lot of them in other areas. Not that we get any special information but just being able to understand their comfort level, how they view the building strategically. And then our local operating team at Charlotte have actually open the building when it was built and brought that knowledge to it. So as you know, we’re very disciplined on the capital side and we did the market – we did pay market for that is very consistent with our strategy. It gives us another foothold in Charlotte which is a very key in Florida market for us and we’re thrilled that we’ve been able to be successful here. Jed Reagan – Green Street Advisors: Okay, thanks. It’s helpful. And I think there is no in-place rents for the asset or joint venture [ph] could you see taking out some mortgage debt on the building?

We’ve purchased – well Jed, it’s Gregg. We purchased the building unencumbered and we don’t anticipate putting a mortgage on it. Jed Reagan – Green Street Advisors: Just searching here is the kind of larger releasing spread that you guys put up last quarter, again that’s kind of driven more by lumpier activity. I wonder if you could just give a little bit of color on what some of those bigger deals that might have pushed the needle up and where they took place, what types of times etcetera.

Yes. Hi Jed, it’s Colin. As I said earlier and in previous calls, we would expect that metric to continue to be fairly volatile and lumpy as you said, but directionally we believe it will keep moving in a very positive direction. What really is going to drive that quarter-to-quarter is the geographic mix of the particular leases. I think generally speaking quarters where Texas leads the leasing activity will see that to certainly drive this percentages. As I mentioned in my remarks we did sign a long-term extension with Gulf South of about 99,000 square feet that was certainly very impactful this particular quarter. Jed Reagan – Green Street Advisors: Okay, thanks. And maybe one for Gregg. On the cash same store NOI number. It was obviously quite strong and you talked about the cost reductions in the free rent burn off. Should we look for the levels of expense reductions to kind of be maintained through the rest of the year, and do you think it is fair to expect that free rent burn off to sort of continue to taper down through the year? Just any comments you can offer on that regard.

Hi Jed. I hate to be vague and evasive, but as you know we don’t provide same store guidance. We just provide kind of asset-by-asset guidance on a quarterly basis. And the guidance that I gave back in February is still good guidance today. Sometimes it’s flat guidance for the year where we have stabilized property. Sometimes it’s increasing NOI guidance for what we have lease up properties. But I can’t – we can’t give you specific same property revenue or expense guidance. Jed Reagan – Green Street Advisors: Sure. I’ll figure and try to approach the envelope anyway. And we saw where Exxon is looking to sell a big development site in Greenway Plaza that can probably support $1 billion mixed used project including some office. Are you looking at that opportunity, and do you think that could impact the local market dynamics in a meaningful way?

Hi Jed, it’s Colin again. We certainly are aware of the project that you’re talking about, and we obviously particular in kind of neighboring properties. We’re very focused on understanding what the existing opportunity might be for us from an investment perspective, at the same time understanding what impact that could have on Greenway as a whole, but as you said it’s a very large potential project. I think we don’t see anything near-term having any impact on Greenway. And again we’ll continue to follow the transaction and determine if ultimately that’s something that makes sense for Cousins, but it’s still very, very preliminary. Jed Reagan – Green Street Advisors: Should you know how many of the square feet of that project could potentially be office or is it too early to tell?

I think it’s way too early to have any ideas as to what the overall site plan could look like there, in many respects it’s a tear down. And so I think you would see a mixed use project obviously in the multifamily developers have a lot of interest in that side as well some of the retailers. So it’s way too early to understand what the mix could look like. Jed Reagan – Green Street Advisors: Okay, thanks. And then just last one picking on the supply issue. It sounds like a competitor in Atlanta has moved forward on a stock development and maybe there is some additional stock supply coming in behind that and Buckhead services [ph] and just wondering if you feel like the market can absorb that and just how – what’s your sort of concern level on that of supply come in?

Well, we’ve read the same that everybody else, it says that [indiscernible] can start up in a 0.5 million square foot building on their site. And when you look at the south of the Buckhead market and the dynamic of the Buckhead market, there is a number of few sites that are available in that market. Assuming that they start, we certainly don’t have any concerns about it from a position at our current inventory. It will be more costly project, rents would need to be at 30 at or so. And if you look at where [Technical Difficulty] on properties that’s certainly getting better, as Colin said with addition of the retail apartment. So we take a note of it, but it doesn’t really causes any concerns. Jed Reagan – Green Street Advisors: Okay, terrific. Thank you guys.

(Operator Instructions) Our next question comes from the line of John Guinee of Stifel Nicolaus. Please proceed with your question. John Guinee – Stifel Nicolaus: Okay, John Guinee here. Thank you very much. Just a little bit so we understand how you’re thinking about replacements costs, Larry. Colorado Tower looks like it’s going to cost you about $340 a square foot to build. Do you think that’s an appropriate number for midtown Buckhead or uptown Charlotte?

John, I think that’s a little low. In Colorado Tower, that’s on a ground lease and so there is no land in that. I saw that there was a report that one of them was put out that speculated that new supply would be in the $350 a square foot. We think it’s probably a little bit north of that. We certainly think if you started Colorado Tower today and put land in it and just where construction costs have moved, it would be more in the $360 or $370 range. It would be more where we would see it in our markets. John Guinee – Stifel Nicolaus: Okay. And then just, maybe Colin or maybe Gregg, I am just looking, and this is purely curiosity. It looks like your Colorado Tower has initial occupancy in the fourth quarter of ‘14, but project costs incurred today are only $57 million of the $126 million total project cost. Can you really get people in that quickly if you spend less than half the money?

John it’s funny that you ask that question, because when I saw that preliminary numbers, I asked the same exact question. And the answer is that number is accurate and we’ll get people moved in at the end of the year. John Guinee – Stifel Nicolaus: I was hoping you knew the answer because I sure didn’t. Okay. And then refresh our memory, now that you’ve bring up Charlotte again. What is the status of Gateway Village? When does that buy/sell kick in, when does the debt mature, when is the lease expiration etcetera?

Debt matures coincident with the lease expiration, 2016. And so Colin has been talking to Bank of America and we’ve got to figure out something before ‘16.

John I think we do. We have ongoing conversations with BofA about it and ultimately what their long-term space needs are. I think it’s fair to say that the new Gateway is a mission critical facility, but over the coming year or so, I think we’ll gain more clarity on exactly how much space overall that they decide to keep. John Guinee – Stifel Nicolaus: And then for additional taxes by sellers, there is something complicated in the unwinding of it.

It’s a little more complicated than that because one of the choices that they can make is just to bias out and provide a return over the period of our investments to 17%. So that’s actually I think what most people have in their earnings models for us is assumption of that is a base case. And that could happen, but there is lot of other things that can happen along the way too. And specifically, I didn’t say it is December ‘16 maturity, so it’s end of the year ‘16, John. John Guinee – Stifel Nicolaus: Great. Okay, thank you very much.

Thanks John.

We have a follow-up question from the line of Jamie Feldman with Bank of America Merrill Lynch. Please proceed with your question. Jamie Feldman – Bank of America Merrill Lynch: Thank you. I know you guys mentioned a couple, but can you walk us through your largest expirations in 2015?

Sure. Hi Jamie, it’s Colin. In terms of the large expirations in ‘15 can really anything over 75,000 square feet or so. It really is ExxonMobil which we talked about, 215,000 square feet, and then MedAssets is a customer at North Point 100 and 200. They are roughly 121,000 square feet and they have an expiration in mid-2015. Jamie Feldman – Bank of America Merrill Lynch: And that’s it for the greater than 75,000?

Yes, that’s correct. Jamie Feldman – Bank of America Merrill Lynch: Okay. And do you have a sense of your mark-to-market on your ‘15 leases at this point?

We do in terms of – in general, we don’t provide specific metrics on that, but I think it’s fair to say that the expirations are below market. Again there is a significant component of the material expirations. Next year, Exxon would be a big chunk of that. It’s a Texas asset and that in general those rents have been characterized as below market. Jamie Feldman – Bank of America Merrill Lynch: And then how long do you think – for the Exxon space, how long do you think you could have it back in service?

I mentioned in my remarks, we’re in the process later this year, we’re going to start a full lobby renovation. I think again we’re pre-marketing that space and I think we’re excited to get that renovation up and running to – we think that’s really going to help us drive the market rent there, but we could start to potentially kind of layer part of ‘15. Jamie Feldman – Bank of America Merrill Lynch: You could actually have tenant moving in by late ‘15?

In late ‘15. Jamie Feldman – Bank of America Merrill Lynch: Okay. All right, great. Thank you guys.

Thanks Jamie.

(Operator Instructions) There appear to be no further questions in the queue. Mr. Gellerstedt, I’ll now turn the call back to you. Please continue with your presentation or closing remarks.

Well, we appreciate everybody attending the call today. We continue to be very excited about where we sit in our markets and our opportunities. Hope everybody has a great summer, rest of summer. And please know that we’re available to talk whenever you want to reach out to us. Thanks very much.

Thank you, ladies and gentlemen. That does conclude today’s presentation. We thank you for your participation and ask that you please disconnect your lines. Have a good afternoon everyone.